Despite an array of significant stories throughout 2024, none could surpass the industry-shaking news of NAR agreeing to settlement terms in the wake of antitrust commission lawsuits that would forever reshape how agents and brokers do business.
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What a year it was for residential real estate.
Real estate professionals adapted to changes in the wake of the antitrust commission lawsuit settlements, faced scrutiny from the Department of Justice (DOJ), reevaluated long-held practices like the three-way agreement, welcomed challengers to the National Association of Realtors (NAR), confronted alleged bad behavior and much more.
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Inman readers voted this week to determine which industry story was the biggest of the year. Despite an array of significant stories throughout 2024, none could surpass the industry-shaking news of NAR agreeing to settlement terms in the wake of antitrust commission lawsuits that would forever reshape how agents and brokers do business.
The industry giant agreed to pay $418 million in damages over four years and enact industry reforms that went into effect this summer.
“We have always wanted to reduce the significant strain on our members and provide a path forward for the industry,” NAR President Kevin Sears said in an email to members at the time of the settlement announcement. “That’s why today we announced a proposed settlement agreement that would end litigation of claims brought on behalf of home sellers related to broker commissions.”
Read the full story of the year through the link below.
NAR interim CEO Nykia Wright, left, and President Kevin Sears, right.
“NAR agrees to sweeping changes in $418M commission settlement”
By Taylor Anderson
All eyes were on the National Association of Realtors this year as the association announced its $418 million proposed settlement of the antitrust commission lawsuits that had rocked the industry for the last few years. The settlement, which NAR will be paying out over the next four years, also stipulated a series of industry practice changes that agents, brokers, associations, and MLSs had to put into effect by Aug. 17, 2024.
Among them, NAR agreed to not create rules that allow listing agents to set compensation for buyer brokers. The association also created a new rule prohibiting offers of compensation from appearing in the MLS. Buyer brokers who are MLS participants would also be required to enter into a written representation agreement before touring homes.
The terms of the settlement fundamentally changed the way real estate professionals view their roles as salespeople and advisors, and has already started to impact the way in which consumers view the industry, early Inman Intel data shows.
Email Lillian Dickerson
